A T H E N A 1 E UROPEAN U NION ATHENA ATHENA 2008 2008 E UROPEAN U NION ATHENA ATHENA 2008 2008 Council decision 2007/384/CFSP of 14 May 2007 ( OJ 13/06/2007.

A T H E N A 1

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20082008

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20082008

Council decision 2007/384/CFSP of 14 May 2007 ( OJ 13/06/2007 L152/14 )

A T H E N A 2

PROCUREMENTPROCUREMENT

Reference: ATHENA Financial Rules – Part IIReference: ATHENA Financial Rules – Part II

Applicable except for Berlin + operations (NATO rules!)Applicable except for Berlin + operations (NATO rules!)

To procure what?To procure what?– anything eligible as common costs or « Nation Borne Costs »anything eligible as common costs or « Nation Borne Costs »

→No authority to contract outside ATHENA’s scopeNo authority to contract outside ATHENA’s scope

– Oursourcing of military capabilities (for ex: guards)Oursourcing of military capabilities (for ex: guards)→Request by Operation Commander to Special Committee Request by Operation Commander to Special Committee →No outsourcing of military capabilities before authorization No outsourcing of military capabilities before authorization

granted by Special Committeegranted by Special Committee

A T H E N A 3

PROCUREMENTPROCUREMENT

PROCEDURESPROCEDURES

Applicable procedure determined by cost of purchase: Applicable procedure determined by cost of purchase:

– estimated cost excluding VAT, no splittingestimated cost excluding VAT, no splitting

– thresholdsthresholds

Deviations: for simpler procedure, if admissible justificationsDeviations: for simpler procedure, if admissible justifications

A T H E N A 4

PROCUREMENTPROCUREMENT

Procedures iaw thresholdsProcedures iaw thresholds

X < 5000 euros: payment on invoices possible X < 5000 euros: payment on invoices possible

5000<X<30 000 euros (« lower threshold »): 5000<X<30 000 euros (« lower threshold »): – negotiated procedure with 3, negotiated procedure with 3, – but J8 may opt for negotiated procedure with 1, without formal but J8 may opt for negotiated procedure with 1, without formal

derogationderogation

30 000 euros<X<« higher threshold »30 000 euros<X<« higher threshold »– negotiated procedure with 3, negotiated procedure with 3, – but negotiated procedure with 1 possible with formal derogationbut negotiated procedure with 1 possible with formal derogation

Above the « higher threshold »: Above the « higher threshold »: – 137 keuros for goods, 211 keuros for services, 5. 278 Meuros for 137 keuros for goods, 211 keuros for services, 5. 278 Meuros for

infrastructure worksinfrastructure works– tenders, except where formal derogationtenders, except where formal derogation

A T H E N A 5

PROCUREMENTPROCUREMENT

PublicationPublication

Above « higher threshold »: in the EU Official Journal Above « higher threshold »: in the EU Official Journal

Encouraged below this « higher threshold »Encouraged below this « higher threshold »

Can be done also in theatre (local press, chambers of Can be done also in theatre (local press, chambers of commerce)commerce)

What to publish?What to publish? - Prior information notice- Prior information notice- Call for expression for interests- Call for expression for interests- Contract notice- Contract notice- Award notice- Award notice

A T H E N A 6

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NORMAL DEADLINES NORMAL DEADLINES

• Open tenders Open tenders - 52 days- 52 days- or 40 if e-mail and internet- or 40 if e-mail and internet- (or 22 if Prior information notice)- (or 22 if Prior information notice)

• Restricted ProceduresRestricted Procedures - 37 days for requests to participate- 37 days for requests to participate- or 30 days if e-mail- or 30 days if e-mail+ 40 days to receive tenders+ 40 days to receive tenders- or 35 if internet- or 35 if internet

• Negotiated procedure with publicationNegotiated procedure with publication- 37 days for requests to participate- 37 days for requests to participate- or 30 days if e-mail- or 30 days if e-mail

A T H E N A 7

PROCUREMENTPROCUREMENT

DEVIATIONSDEVIATIONS

- For any simpler procedure, including single sourceFor any simpler procedure, including single source- For shortened deadlinesFor shortened deadlines

- Above 30 000 eurosAbove 30 000 euros

- Which authority?Which authority?- 30 000<X<137 000 euros: J8 30 000<X<137 000 euros: J8 - 137 000<X<1 Meuros: ATHENA’s administrator137 000<X<1 Meuros: ATHENA’s administrator- >1 Meuros: ATHENA’s Special Committee>1 Meuros: ATHENA’s Special Committee

through the through the administratoradministrator

- Requests: from J8 to administrator by e-mailRequests: from J8 to administrator by e-mail

A T H E N A 8

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DEVIATIONSDEVIATIONS

SHORTENED DEADLINESSHORTENED DEADLINES

Restricted procedures Restricted procedures

and negotiated procedures with prior publicationand negotiated procedures with prior publication

To: 15 + 10 daysTo: 15 + 10 days

For negotiated procedure without publication: For negotiated procedure without publication: freefree

A T H E N A 9

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Which justifications for derogations?Which justifications for derogations?

(most frequently used)(most frequently used)

– Extreme urgencyExtreme urgency

- When for technical or artistic reasons, the contract may be When for technical or artistic reasons, the contract may be awarded only to one particular operator (ex: public awarded only to one particular operator (ex: public monopolies)monopolies)

- Acquisition or rental of land or existing buildingsAcquisition or rental of land or existing buildings

- Additional supplies, where a change in supplier would create Additional supplies, where a change in supplier would create technical difficulties (incompatibility, problems in technical difficulties (incompatibility, problems in maintenance)maintenance)

- Additional works or services, not exceeding 50% of initial Additional works or services, not exceeding 50% of initial worksworks

- Use of a national contract, awarded in conformity with EC Use of a national contract, awarded in conformity with EC DirectivesDirectives

A T H E N A 10

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For every procedure, main steps:For every procedure, main steps:

1) Make a commitment in the budget 1) Make a commitment in the budget (=reserve appropriations)(=reserve appropriations)

2) 2) Draw up technical specifications (with responsible branch)Draw up technical specifications (with responsible branch)Draw up administrative requirements (candidates’capacities)Draw up administrative requirements (candidates’capacities)

3) Advertise3) Advertise4) Select successful candidate4) Select successful candidate5) Conclude a contract5) Conclude a contract6) Check delivery6) Check delivery7) Enter in the inventory7) Enter in the inventory8) Pay against receipt8) Pay against receipt9) Write off9) Write off

A T H E N A 11

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1)1) Make a commitment in the budgetMake a commitment in the budget

– temptation for every section (J1, J4, J6) to buy and temptation for every section (J1, J4, J6) to buy and then bring the bill, especially early in operationthen bring the bill, especially early in operation

– should be avoided: should be avoided:

– budget is a limit and must be complied withbudget is a limit and must be complied with

– budget must be managed: redeployment of budget must be managed: redeployment of appropriations during operation are usually appropriations during operation are usually necessarynecessary

– therefore, sequence « budget commitment then therefore, sequence « budget commitment then contract or purchase order » should be complied contract or purchase order » should be complied withwith

A T H E N A 12

PROCUREMENTPROCUREMENT

2) a) Technical specifications:2) a) Technical specifications:

– essential, even if takes timeessential, even if takes time

– requirements must be proportionate to needs and duration of requirements must be proportionate to needs and duration of operation (principle of economy)operation (principle of economy)

– requirements must be sufficiently detailedrequirements must be sufficiently detailed

2) b) Administrative requirements:2) b) Administrative requirements:

– candidates capacity to do the job essential, especially in theatrecandidates capacity to do the job essential, especially in theatre

– security requirements security requirements

– performance guarantee: performance guarantee:

– compulsory if pre-financing exceeds 150 000 euros or compulsory if pre-financing exceeds 150 000 euros or contact above 137 000 euros (5 to 10% of contract)contact above 137 000 euros (5 to 10% of contract)

A T H E N A 13

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3) Advertise3) Advertise

– If above the « higher threshold » and no deviation:If above the « higher threshold » and no deviation:

→in the Official Journal of the European Unionin the Official Journal of the European Union

– If below the « higher threshold » or with a deviation:If below the « higher threshold » or with a deviation:

→advertise by any means:advertise by any means:

– local chamber of commerce, confederation of industrylocal chamber of commerce, confederation of industry

– local presslocal press

→can resort to existing lists (provided by Embassy, can resort to existing lists (provided by Embassy, Commission delegation, etc.) Commission delegation, etc.)

A T H E N A 14

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4)4) Select the successfull candidateSelect the successfull candidate

– If above the « higher threshold » and no deviation:If above the « higher threshold » and no deviation:→formal tender (double sealed envelopes)formal tender (double sealed envelopes)

– If below the « higher threshold » or with a deviation:If below the « higher threshold » or with a deviation:→negotiated procedure: negotiated procedure:

→negotiate price & services, works, suppliesnegotiate price & services, works, supplies

– In any caseIn any case→selection committee: selection committee: – appointed by authorising officer (Operation Commander, appointed by authorising officer (Operation Commander,

by delegation: local J8)by delegation: local J8)– at least 3 persons from 2 different sections of the HQ at least 3 persons from 2 different sections of the HQ

concerned (J8+technical branch concerned)concerned (J8+technical branch concerned)

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4)4) Select the successfull candidate (continued)Select the successfull candidate (continued)

Criteria:Criteria:

– either the lowest price either the lowest price – should be the ruleshould be the rule

– or the best-value-for-moneyor the best-value-for-money– taking into account notably the capacity to do the job taking into account notably the capacity to do the job

within the timeframewithin the timeframe

– must be specified in the specificationsmust be specified in the specifications– report on procedure, including reasons for selection report on procedure, including reasons for selection

A T H E N A 16

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5) Conclude a contract5) Conclude a contract

– in writing (to avoid doubts and conflicts)in writing (to avoid doubts and conflicts)

– 2 possible forms:2 possible forms:

– either a single document signed by the partieseither a single document signed by the parties

– or a signed commitment from the candidate (offer, or a signed commitment from the candidate (offer, acceptance of the conditions set out by the contracting acceptance of the conditions set out by the contracting authority), signed by the contracting authorityauthority), signed by the contracting authority

Notify successful candidateNotify successful candidate

Inform othersInform others

Enter into accounts (legal commitment)Enter into accounts (legal commitment)

A T H E N A 17

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6) Check delivery6) Check delivery

- If works or services: If works or services:

→ performance must be monitored closely & continuouslyperformance must be monitored closely & continuously

→ conformity to contract must be assessedconformity to contract must be assessed

- If supplies: If supplies:

→ delivery and conformity to contract must be assessed delivery and conformity to contract must be assessed

- In any case, delivery and acceptance of the works, In any case, delivery and acceptance of the works, services or supplies must be certified (by the technical services or supplies must be certified (by the technical branch concerned) before final payment may be madebranch concerned) before final payment may be made

A T H E N A 18

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7) Enter in the inventory7) Enter in the inventory

– Must be done immediately on acceptanceMust be done immediately on acceptance

→Responsible branches must be made awareResponsible branches must be made aware

– All items with a period of use normally greater than one year All items with a period of use normally greater than one year

→Not based on the value, but on normal durabilityNot based on the value, but on normal durability

(eg: portable phones should be on the inventory)(eg: portable phones should be on the inventory)

– Should contain: Should contain: – description of itemsdescription of items– location/person responsible location/person responsible – date of acceptancedate of acceptance– purchase costpurchase cost

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8) Pay8) Pay

– Payments may be made:Payments may be made:– on account (upon ordering, before work starts)on account (upon ordering, before work starts)– as interim payments (usually according to progress)as interim payments (usually according to progress)– of the balance due after acceptance.of the balance due after acceptance.

– Payments on account should be kept minimalPayments on account should be kept minimal– Interim payments should be made based on acceptance Interim payments should be made based on acceptance

of partial delivery or progress madeof partial delivery or progress made– Final balance may be paid only after final acceptanceFinal balance may be paid only after final acceptance

– Two signatures required for any payment Two signatures required for any payment (authorizing officer + accounting officer)(authorizing officer + accounting officer)

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9) Write off9) Write off

– Distinct from final destination of equipment, to be decided by Distinct from final destination of equipment, to be decided by Special Committee, at end of operationSpecial Committee, at end of operation

– In every HQ, a write-off committee:In every HQ, a write-off committee:– the head of the J8the head of the J8– the head of the branch responsible for the equipmentthe head of the branch responsible for the equipment– the head of the branch responsible for its maintenancethe head of the branch responsible for its maintenance

– < 30 000 euros: HQ’s commander may decide a write off< 30 000 euros: HQ’s commander may decide a write off– > 30 000 euros:HQ’s commander may decide> 30 000 euros:HQ’s commander may decide

with written assent of Write with written assent of Write Off CommitteeOff Committee

– In case of loss or destruction: report filed by J8 and write offIn case of loss or destruction: report filed by J8 and write off

A T H E N A 21

TAXESTAXES

In theatre:In theatre:- SOFA provides exemption from taxes, customs SOFA provides exemption from taxes, customs

duties and customs proceduresduties and customs procedures- Except where taxes for services renderedExcept where taxes for services rendered

In the EU:In the EU:- Decision by Member States = TreatyDecision by Member States = Treaty- RatificationRatification

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QUESTIONS ?